Yuuzoo Business Times | Nissan Chairman Carlos Ghosn arrested over financial misconduct

Yuuzoo business times: Following allegations of financial misconduct, Nissan Chairman Carlos Ghosn has been arrested. Mr. Ghosn has been accused of acts of misconduct that includes under-reporting pay package and personal use of company assets.

Nissan has been conducting an internal investigation for the past several months based on a whistleblower report. The investigation has been regarding misconduct involving the company’s Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly.

The investigation showed that over many years, both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amounts, in order to reduce the disclosed amount of Ghosn’s compensation. Also, with regard to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed.

Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with its investigation. Japan has said that it is ready to work for the stability of the Nissan-Renault global alliance, which has been the symbol of Franco-Japanese industrial success.

As the misconduct uncovered through our internal investigation constitutes clear violations of director duty of care, Nissan’s Chief Executive Officer Hiroto Saikawa will propose to the Nissan Board of Directors to promptly remove Ghosn from his positions as chairman and representative director. Saikawa will also propose the removal of Kelly from his position as representative director.

Nissan has deeply apologized for causing great concern to its shareholders and stakeholders and will continue its work to identify governance and compliance issues, and to take appropriate measures.